Question $2$

$(5$ marks$)$

You are the manager $/$ controller for an architectural company whose financial year$-$end is on $31$ December. As part of the management team, you receive a year$-$end bonus directly related to the company's earnings for the year. One of your duties is to review the transactions recorded by the accountants. A new accountant recorded the receipt of R$10000$ in cash as an increase in cash and an increase in turnover. The R$10000$ is a deposit, and the accountant explains to you that the company plans to provide the services to the client in March of the following year.

Required:

a$)$ Did the accountant correctly record the client's deposit? Explain your answer.

b$)$ What would you do as controller for the company? Do you have a responsibility to do anything to correct the accounts? Explain your answer.